Exercise 7-11A Accounting for notes receivable LO 7-5 Rainey Enterprises loaned $15,000 to Small Co. on June 1 Year 1, for one year at 7 percent interest Required Show the effects of the following transactions in a horizontal statements in the Statement of Cash Flows column, indicate whether the Nem is an operating activity (OA, an investing activity (A), or a financing activity (FA) (Do not round Intermediate calculations. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells in the Statement of Cash Flows column may require an input leave cells blank if there is no corresponding Input needed.) (1) The loan to Small Co. (2) The adjustment at December 31, Year 1 (3) The adjustment and collection of the note on June 1 Year 2 RAINEY ENTERPRISES Assets Horizontal Statements Model Equity Income Statement interest Retained Revenue - Expense - Net Income Receivable Earnings! Date Statement of Cash Flow Notes | Receivable 01/Yeart 2312 8/1/Year 2 0.1 Year 2